Traditional gift cards are a “one-size fits all” product. For example, some gift cards are tied to a particular store and have a single value. Thus, if a mom gives a $25 STARBUCKS gift card to her daughter, then her daughter must spend the $25 at STARBUCKS. However, if her daughter wanted to spend $25 at TARGET, she would not be able to use the STARBUCKS gift card there.
Some gift cards available from major credit/debit card issuers, e.g., VISA, MASTERCARD or AMERICAN EXPRESS, may be used anywhere VISA, MASTERCARD or AMERICAN EXPRESS are accepted. These gift cards, however, are also “one-size fits all” products, and because they may be used anywhere, the daughter may purchase products and or services that are objectionable to the mom. For example, if a mom gives the daughter a $25 VISA gift card, her daughter may spend $25 on any product or service the daughter wishes.
However, there is not a gift card that incentivizes the recipient to make acceptable choices. For example, mom may like for her daughter to buy a book or school supplies using the gift card, but her daughter may go to Whataburger with her friends to purchase burgers and fries. What is needed is a gift card that dynamically adjusts its value and that incentivizes the recipient to follow certain behaviors in order to obtain maximum value from the gift card.